European Markets React to German Industrial Output Decline

Following the release of disappointing economic data from Germany, major European stock markets closed lower on Friday. The data revealed that Germany's industrial output in December reached its lowest point since 2020, signaling potential economic challenges ahead.

Trade War Concerns Loom Over European Economy

Investors are also closely monitoring the escalating trade tensions initiated by United States President Donald Trump's tariffs on China, Mexico, and Canada. The European Central Bank (ECB) has expressed concerns that these tariffs could adversely affect the European economy, adding to the market's unease.

Market Performance Highlights

Notable declines were observed across major indices, with the DAX dropping 0.63% and the Euro Stoxx 50 falling 0.62%. The CAC 40 and FTSE 100 also experienced losses, sliding 0.43% and 0.31% respectively. Among individual stocks, Porsche and Pernod Ricard were among the hardest hit, with significant drops in their share prices.

Currency Movements

The euro and pound sterling both weakened against the dollar, with the euro exchanging for $1.03361 and the pound sterling for $1.24000, reflecting the broader market sentiment.